Courtyard dispute lands in court

Pizza Bob's alleges it has a right to use outdoor seating at Haleiwa Town Center

A dispute over lease terms involving Haleiwa Shopping Plaza's outdoor courtyard has landed in court, with both landlord and tenant filing suit against one another.

Pizza Bob's, a longtime eatery at the plaza, says it has the exclusive right to use the outdoor courtyard based on its lease agreement dating back to 2004 with the previous landlord.

But Haleiwa Town Center LLC, which took over ownership of the lease from the North Shore Investment Co. in August of last year, says the restaurant is violating the lease by not paying additional rent and common maintenance fees for the use of the courtyard.

COURTESY OF PIZZA BOB'S Pizza Bob's in Haleiwa has filed suit alleging it should be allowed to use courtyard space at Haleiwa Town Center for extra seating. The shopping center's management also has sued, and a win in its favor could result in the eatery having to leave the center altogether.

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Pizza Bob's, a longtime pizza eatery on the North Shore, and its landlord, Haleiwa Town Center LLC, are in a lease dispute over courtyard space.

The courtyard amounts to about 45 extra seats for Pizza Bob's, but for Haleiwa Town Center, it amounts to 1,560 square feet of additional rent and common area maintenance fees at Haleiwa Shopping Plaza. The two parties have been in a nearly year-long dispute that has finally spilled into the courts.

Pizza Bob's has filed suit in state Circuit Court seeking to affirm what it says was the lease honored by North Shore Investment Co., the landlord prior to Haleiwa Town Center.

Haleiwa Town Center, which took over the lease to the plaza in August of last year from North Shore Investment, has filed a lawsuit of its own in state District Court, saying Pizza Bob's is in default on the lease due to improper use of the patio space.

A hearing on the landlord's suit is scheduled for tomorrow morning. At stake is whether Pizza Bob's will have to leave the plaza altogether.

"It's hard to believe this is really happening," said Bob Lee, namesake of Pizza Bob's. "We've been here for years. We've been a good tenant, and paid all amounts due under the lease."

Lee, 62, said he's been operating Pizza Bob's (formerly Steamers) since 1974, and invested $40,000 to build the deck currently used for outdoor seating back in 1979.

Pizza Bob's, which Lee said started out as just a little shack, serves pizza, sandwiches, salads, beer and wine. The restaurant has relocated three times, but has been at its current location since 1994.

The family-run restaurant seats about 74 in about 2,800 square feet indoors, and about 45 outdoors.

He said upon taking over the lease, the new landlord invoiced Pizza Bob's in November, seeking about $13,000 more for the use of the courtyard and threatening to otherwise terminate the lease. The lease agreement, signed in August 2004, expires on Nov. 30, 2014.

But Will Schoettle, principal of Haleiwa Town Center, says he is just trying to get Pizza Bob's to pay its fair share for common area maintenance fees.

"This all blends into our efforts to revitalize main street Haleiwa," Schoettle told the Star-Bulletin. "Pizza Bob's is occupying 17 percent of the shopping center, and only paying 11 percent of common maintenance fees to the detriment of the other tenants."

He says Haleiwa Town's goal is to use the courtyard patio as a common area to draw in customers from other businesses as well. Radio Shack, for instance, has an entrance from the patio that they are unable to use because of Pizza Bob's, he said.

For him, the lease terms are in black and white, and include only the 2,800 square feet of interior space.

Haleiwa Town Center is working with architect Sid Snyder of Ossipoff Snyder & Rowland to improve the street frontage of the retail center.

Some ideas for drawing more pedestrian traffic to the center include a shaded patio area with a smoothie operator, for instance. Schoettle said indoor and outdoor dining would be available in other parts of the center.

Lee said he welcomes the revitalization plans of Haleiwa Town Center, and looks forward to them.

For Lee, however, the courtyard has always been for Pizza Bob's exclusive use, as agreed upon with the previous lease owner, North Shore Investment, a partnership headed by Watumull LP.

Lee's attorneys at McCorriston Miller Mukai MacKinnon say they have a declaration from North Shore Investment affirming the outdoor courtyard was included in the 2004 lease agreement.